Every business evolves alongside its technology, and in today’s digital world, small businesses have no choice but to invest in technology as they begin to scale. Now that some newly legitimized cannabis operators with out-of-the-box accounting solutions are starting to grow, they’re exposed to a new world of cannabis software and all the ways it can make life easier.
If you’ve decided to make your digital transformation to cloud-based cannabis accounting software, it can seem a costly proposition at any stage. Once you’ve purchased a solution, the time needed to implement and understand is considerable.
Because of the massive monetary and staff hours spent to successfully implement and onboard a cannabis ERP (Enterprise Resource Planning), it becomes a critical component to justify the investment into the cloud.
Cost Justification for Moving to the Cloud
Start by identifying the total costs involved to purchase the software and the time required to implement it. Compare the overall investment cost to the benefits it provides to your workforce and operations, then calculate the expected ROI.
Total Cost of Ownership (TCO)
Determine the Total Cost of Ownership (TCO), which involves calculating the total cost involved in purchasing a solution, implementing it, and maintaining the system after that. The total expenditure also includes investment in the software licenses, time and costs involved to train the staff.
Total Cost Savings
Consider how much money you’ll save by purchasing the software. Was the business better off without it, and if not, then compare the differences between the older and the new software solution. How much have you been able to save on costs? These questions will self-design a picture of the effectiveness of the software investment.
Return on Investment (ROI)
Estimate what your cannabusiness is gaining from the purchase, excluding the total costs invested. The timeframe to realize ROI varies with each company and depending on the organization size, but you can make some projections.
Assessing the Business Processes of an Organization
To justify the transition to the cloud to senior management, stakeholders, and investors, you must be able to define the operational inefficiencies, determine the challenges related to them, and how cannabis ERP software promises improvement. The new software solution must be able to improve the overall value, productivity, and revenue – and it will.
A cloud-based setup is typically much lower than on-premise alternatives. It can deliver only what you need based on your requirements rather than bells and whistles you’ll never use.
Define the Organizational Goals
Find out whether the current software technology can meet your long time goals. As cannabis businesses grow and expand, the software requirement changes and you’ll need to stay in line with the latest cannabis industry legislation and trends.
Do you have the IT infrastructure needed for an on-premise system? This includes skilled IT staff, servers, and other hardware as well as the floorspace needed to house them – these represent significant cost variables when considering an onsite system.
Just like spending on the tangible assets of a company, it is vital to invest in the technological aspects of a company. Implementing a cannabis ERP solution will improve the business while helping to retain the most crucial assets to any organization – its employees.
With a scalable solution, cannabis companies can save on costs and flourish while serving more customers than ever before.
Cannabis enterprise resource planning (ERP) software delivers a single source of accurate and up-to-date business data to cannabis companies. By integrating a purpose-built system that supports your specific cannabis industry needs, you get real business data and intelligence tools to reveal cash flow and noncompliance issues. You also simplified complex cannabis accounting processes designed for the cannabis supply chain.
c2b teknologies offers a financial management package that delivers automation and accounting controls to keep your cannabis operation audit-ready and positioned to scale. Contact us to learn how we can bring improved business performance to your cannabis organization.